Montenegro’s Parliamentary Committee calls for action to lower prices and support local producers

The Parliamentary Committee on Economy, Finance and Budget, chaired by Boris Mugoša, has adopted conclusions and recommendations following a consultative hearing on the topic of “Prices in Retail Chains”. These recommendations will be submitted to the Government of Montenegro and employers’ associations.

“The key responsibility now lies with the Government and retail chains to implement the proposed measures to ensure more affordable prices for end consumers,” stated Mugoša.

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Emphasizing the need for additional measures to protect citizens’ living standards and to define concrete steps toward a systemic solution to high prices, the Committee proposed the following:

• The Government is urged to consider reducing the value-added tax (VAT) rate on fruits and vegetables, assess the possibility of lowering VAT on processed meat products, and conduct an analysis on the justification of excise tax policies on other products;
• Increased support for domestic production is recommended, through greater budget allocations to enhance the competitiveness of Montenegrin businesses and continued investment in the Agro-budget;
• The Government, in collaboration with retail chains, should ensure that domestic products are placed in more visible positions within stores to promote local goods;
• Retail chains are encouraged, if operationally and spatially feasible, to establish dedicated areas within larger stores for products with regulated or limited prices;
• A new pricing transparency mechanism should be introduced, whereby retailers clearly display both the current and previous retail prices of products, either from a specific date or over a given period;
• All stakeholders involved in the supply chain—including importers, distributors, and retailers—are invited to explore possibilities for further cost adjustments, in cooperation with Montenegrin employers’ associations, to help lower prices for end consumers.

The Committee stresses the importance of swift and coordinated action from both public and private sectors to combat inflation and ensure affordability for citizens across Montenegro.